I recently read this article about Panera opening a "pay-what-you-can" cafe in Lakeview, Chicago. Although I think that this is good in theory, I have a lot of questions about why they would choose Lakeview. For one, Lakeview is one of the most affluent neighbourhoods in Chicago, if they truly did want to "create an experience to lift people up", they should consider neighbourhoods where people could really use the food.
In the article, they justify that they need the "million dollar homes" down the street to make sure that there are a stable flow of affluent folks who will pay the suggested amount for food in order to support those that cannot. However, I think that there could be many other alternatives. Putting in the loop for example would not only put it closer to the west and south side that have much greater need, but also give it access to many more "affluent" (in the sense that you have a captive lunchtime audience of white-collar workers) but also give it the high volume that could make a store like this more profitable for the company. Moving it to the far north (Andersonville and farther), would also put it closer to the lower income/middle income sector if they wanted to play it safe, and would allow for it to become more of a "neighbourhood hangout"-- the type of place that people go to work, read or just enjoy a cup of coffee-- a mysterious mix that Starbucks made famous and companies have been trying to replicate ever since.
Perhaps I am just over-sensitive now that I live in the Near West and I see the discrepancy of the "have-a-lots" and "have-nots". My neighbourhood, for example, is filled with BMWs, Audis and brand new "middle-market" cars like Toyotas and Hondas. However, 5-6 blocks away I run into public housing. 5-6 blocks in the other direction brings me to one-bedroom apartments that go for $1800/month. The area, in my mind, is something that makes me more aware of what a real city looks like out of the posh neighbourhoods of River North, Gold Coast and Lakeview.
More likely is that I recently read a fantastic article in Fast Company about Homeboy Industries. Founded by Father Gregory Boyle and based in LA, this organization focuses on rehabilitating ex-cons and provides services to the community by providing a service. Homeboy Industries started by making salsa, and has now spread to making tortilla chips, guacamole, bread and is on the verge of starting their own chain of quick service restaurants in high-volume areas like the Los Angeles International Airport. Using the revenue from these ventures, Homeboy focuses on tattoo removal, educational classes and job placement services while providing food and shelter to those who need it.
I know that these two organizations are different ("But there's way more low-income than there are ex-cons!", "The ex-cons have forfeited the right for specialized treatment!"-- these are all things that I've heard in discussing this with friends, so bear with me). Homeboy probably does have a smaller demographic base, but the business model still stands. If Panera really wanted to make a difference, they would focus on areas where they could do double duty. If they set up in the far North, West Side or South Side, they could offer jobs, subsidized food to the poor, reliable food to those residents that live in "food deserts" and still be close enough to "affluent neighbourhoods" that would support their venture. Homeboy got it right in that they don't just provide a product and expect others to sustain it-- they built a model where the business could feed itself. (No pun intended...Okay, a little bit of a pun intended.) Homeboy Industries' budget is approximately $14M for 2012, and is on pace to open additional locations in the next two years. We'll just need to wait and see the impact of Panera's store in Lakeview.
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